S.S Corporation had sales of Rs. 4,500,000. The fixed expense was Rs. 1,200,000 and variable expense totaled Rs. 1,800,000. You are required to calculate Break-Even Point for S.S Corporation.
In: Accounting
Rolt Company began 2019 with a $105,000 balance in retained earnings. During the year, the following events occurred:
1. The company earned net income of $86,000.
2. A material error in net income from a previous period was corrected. This error correction increased retained earnings by $9,590 after related income taxes of $4,110.
3. Cash dividends totaling $12,000 and stock dividends totaling $18,500 were declared.
4. One thousand shares of callable preferred stock that originally had been issued at $115 per share were recalled and retired at the beginning of 2019 for the call price of $125 per share.
5. Treasury stock (common) was acquired at a cost of $19,000. State law requires a restriction of retained earnings in an equal amount. The company reports its retained earnings restrictions in a note to the financial statements.
Required:
Prepare a statement of retained earnings for the year ended December 31, 2019.
In: Accounting
Your examination of the Preferred Stock and Common Stock accounts reveals that the amounts shown correctly state the total par value of the issued capital stock. The Retained Earnings account contains the accumulated earnings of the company, with the exception of any items of retained earnings that were inappropriately debited or credited to the Capital Surplus account.
Required:
|
1. |
Prepare whatever journal entries are necessary to eliminate the Capital Surplus account and to correct Hubbard’s shareholders’ equity accounts. |
In: Accounting
ABC Corporation reported the following data for the month of January: Inventories: Beginning Ending Raw materials 46,000 34,000 Work in process 31,000 29,000 Finished goods 27,000 55,000 Additional information: Raw materials purchases 79,000 Direct labor cost 93,000 Manufacturing overhead cost incurred 54,000 Indirect materials included in manufacturing overhead cost incurred 8,000 Manufacturing overhead cost applied to Work in Process 57,000 Calculate cost of goods sold during the month of January?
In: Accounting
The Dorset Corporation produces and sells a single product. The following data refer to the year just completed:
Beginning inventory 0
Units produced 9,000
Units sold 7,000
Selling price per unit $ 47
Selling and administrative expenses:
Variable per unit $ 4
Fixed per year $ 58,000
Manufacturing costs:
Direct materials cost per unit $ 10
Direct labor cost per unit $ 6
Variable manufacturing overhead cost per unit $ 5
Fixed manufacturing overhead per year $ 90,000
Assume that direct labor is a variable cost.
Required:
a. Prepare an income statement for the year using absorption costing
b. Prepare an income statement for the year using variable costing
c. Reconcile the absorption costing and variable costing net operating income figures
In: Accounting
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer’s base price is $1,080,000, and it would cost another
$22,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $605,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net working capital (inventory) of $15,500. The sprayer would not change revenues, but it is expected to save the firm $380,000 per year in before-tax operating costs, mainly labor.
Campbell’s marginal tax rate is 35%.
In: Accounting
| PowerDrive, Inc. produces a hard disk drive that sells for $175 per unit. The cost of producing 25,000 drives in the prior year was: | ||
| Direct material | $625,000 | |
| Direct labor | 375,000 | |
| Variable overhead | 125,000 | |
| Fixed overhead | 1,500,000 | |
| Total cost | $2,625,000 |
| At the start of the current year, the company received an order for 3,200 drives from a computer company in China. Management of PowerDrive has mixed feelings about the order. On the one hand they welcome the order because they currently have excess capacity. Also, this is the company’s first international order. On the other hand, the company in China is willing to pay only $125 per unit. |
| What will be the effect on profit of accepting the order? |
Round to two decimal places.
In: Accounting
| This cost data from Hickory Furniture is for the year 2017. | |||||
| Month | Invoices Processed | Overtime Wages | |||
| January | 12000 | $7,760 | |||
| February | 8000 | $6,800 | |||
| March | 1000 | $6,000 | |||
| April | 7000 | $6,100 | |||
| May | 5000 | $6,200 | |||
| June | 10000 | $7,300 | |||
| July | 11000 | $7,400 | |||
| August | 9000 | $6,900 | |||
| September | 5000 | $6,500 | |||
| October | 9000 | $6,600 | |||
| November | 8000 | $6,800 | |||
| December | 11000 | $7,450 | |||
| A. Using the high-low method, express the factory utility expenses as an equation where x represents number of chairs produced. | |||||
| B. Predict the utility costs if 900 chairs are produced. | |||||
| C. Predict the utility costs if 750 chairs are produced. | |||||
| D. Using Excel, create a scatter graph of the cost data and explain the relationship between number of chairs processed and utility expenses. |
In: Accounting
Coronado Industries has issued 1,500 shares of common stock and 300 shares of preferred stock for a lump sum of $55,000 cash.
1). Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $30, and the par value of the preferred stock was $40 and the fair value $50. (Each valuation is on a per share basis and there are ready markets for each stock.)
2). Give the entry for the issuance assuming the same facts as the par value of the common stock was $5 and the fair value of $22 per share, and the par value of the preferred stock was $40 and has no ready market.
In: Accounting
The managerial accountant at Sunny Manufacturing needs to determine how many costs are fixed costs and how many costs are variable costs in the organization. The managerial accountant reported the following information:
Use the high-low method to determine the cost equation and use machine hours as the base for a cost driver in the analysis.
| Month | Machine-Hours | Total Cost |
| January | 1,800 | $21,500 |
| February | 2,900 | $23,200 |
| March | 1,000 | $19,750 |
| April | 2,400 | $21,000 |
| May | 3,400 | $23,900 |
In: Accounting
Hardley sells mamburgers. He faces fixed costs of $18,000 per month and variable production and marketing costs of $2 per mamburger. Market research has developed the following demand schedule. Which price/volume combination should Yardley choose?
A. Price: $12; Quantity: 4,000
B. Price: $10; Quantity: 5,500
C. Price: $8; Quantity: 7,000
D. Price: $6; Quantity: 9,000
E. Unable to determine
In: Accounting
The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used.
| Year 1 | |
| Jan. 4 | Purchased a used delivery truck for $15,360, paying cash. |
| Nov. 2 | Paid garage $180 for miscellaneous repairs to the truck. |
| Dec. 31 | Recorded depreciation on the truck for the year. The estimated useful life of the truck is 4 years, with a residual value of $3,200 for the truck. |
| Year 2 | |
| Jan. 6 | Purchased a new truck for $9,000, paying cash. |
| Apr. 1 | Sold the used truck purchased on Jan. 4 of Year 1 for $6,270. (Record depreciation to date in Year 2 for the truck.) |
| June 11 | Paid garage $250 for miscellaneous repairs to the truck. |
| Dec. 31 | Record depreciation for the new truck. It has an estimated residual value of $1,600 and an estimated life of 5 years. |
| Year 3 | |
| July 1 | Purchased a new truck for $96,000, paying cash. |
| Oct. 2 | Sold the truck purchased January 6, Year 2, for $3,480. (Record depreciation to date for Year 3 for the truck.) |
| Dec. 31 | Recorded depreciation on the remaining truck purchased on July 1. It has an estimated residual value of $17,300 and an estimated useful life of eight years. |
Required:
Journalize the transactions and the adjusting entries. If an amount box does not require an entry, leave it blank. Do not round intermediate calculations. Round your final answers to the nearest cent.
In: Accounting
On October 1, 2020, Sandhill, Inc. assigns $1,122,400 of its accounts receivable to Teal National Bank as collateral for a $719,700 note. The bank assesses a finance charge of 3% of the receivables assigned and interest on the note of 10%. Prepare the October 1 journal entries for both Sandhill and Teal
In: Accounting
A company had the following purchases and sales during its first month of operations:
January 1: Purchased 10 units at $400 per unit; January 9: Sold 6 units at $1200 per unit; January 17: Purchased 8 units at $550 per unit; January 27: Sold 7 units at $1200 per unit
Using the Periodic weighted average method, what is the value of cost of goods sold? (Round weighted average cost per unit to 2 decimal places)
In: Accounting
Z plc makes a single product which it sells for £16 per unit. Fixed costs are £76 800 per month and the product has a contribution to sales ratio of 40%.
In a period when actual sales were £224 000, Z plc's margin of safety, in units, was
A 2000
B 6000
C 8000
D 12 000
E 14 000
In: Accounting